Working in Market - Italy

Distribution system

The online environment plays a key role in Italy for destination selection and planning. Consumers are increasingly using online channels for bookings, especially for flights. Traditional operators however, remain the main booking channel for long haul and special interest travel, such as groups and the honeymoon segment.

Wholesalers/large agents

Commission level: 12% - 20%

• The majority produce brochures on Australia combined with New Zealand and Pacific Islands. These operators sell their products through travel agencies and most of them also own travel agency networks or have significant shares in these networks.
• The honeymoon segment is one of the major for these operators, representing between 50 to 70 per cent of their total business to Australia.
• Consolidations and mergers have impacted the biggest players in the market.
• The major wholesalers in Italy are: Turisanda (Alpitour Group), Discover Australia, Go Australia, Alidays, Naar, Creo, Idee per Viaggiare, Volo online and Mappamondo.

Retail agents

Commission level: 10% - 14%

• Retail agencies are very influential in Italy, managing much of the traditional distribution.
• There are over 6000 travel agencies in Italy. They are spread throughout the market with over 70 per cent concentrated in central and northern Italy. Travel agency networks represent about 80 per cent of total agencies.
• There are four main travel agency networks representing around 5300 retails. Of these the top five are Welcome Travel Group, Geo Travel Network, Gattinoni / Robintur, Bluvacanze and UVET. 

Online

Commission level: 6% - 12%

• Consumers are increasingly using online channels for bookings, especially for flights.
• The most used Online Travel Agencies (OTAs) are: Booking.com, Expedia, eDreams, Agoda, Mister Fly and Airbnb

Aussie Specialists

• The Aussie Specialist Program (ASP) is the primary platform for Tourism Australia to train and develop front line travel sellers to best sell Australia.
• There are over 900 qualified Aussie Specialists in Italy. This includes 32 ‘Premier Aussie Specialists’, recognised with Premier status for their extensive knowledge of the destination, commitment to selling Australia and ongoing learning via the Aussie Specialist Program.

Inbound Tour Operators

Commission level: up to 30%

Inbound tour operators (ITOs) form a key part of the distribution chain in Italy, linked with Italian wholesalers that run Australian programs. Key ITOs include AOT/ATS Pacific, Pan Pacific and Goway/Pacific Destinations.

Trends

Distribution

• Young consumers, especially working holidaymakers, are increasingly booking direct with airlines and product.
• The Italian online travel agency (OTA) market remains somewhat fragmented, with global players maintaining a significant share. They sell predominantly short/medium haul travels or flights only.
• Tour operators are still key distributors for honeymoons and long-haul travel, with online channels used predominantly as a research tool.
• Luxury operators either independent or affiliated to Virtuoso and/or Traveller Made are emerging as key travel counsellors for premium travellers.

Planning and purchasing travel

• The total trip spend on leisure travel to Australia by Germans was AUD$250 million in 2023, growing by 81% compared to 2022, while the average trip spend was AUD$3,679, growing by 3% compared to 2022 (Source: IVS 2023).   
• Italian consumers are searching for value deals, particularly via online channels. Internet transactions for travel continued to grow in Italy and increased in total travel sales share.
• Traditional retail agencies remain an important channel for long haul, complex destinations such as Australia. Retail agents also remain a vital source of information alongside travel guides for Italian consumers.

Special interest

• Special interest segments out of the Italian market include youth, honeymoon and luxury. Honeymoon is one of the main segments for special interest tour operators, which are particularly active in their marketing.
• It’s increasingly common that some travel agencies with a tour operator licence sell destinations upon request, buying directly from inbound tour operators (ITOs).
• The youth segment has performed very well in recent years; however the traffic is not directly driven by specialist operators. A number of operators selling language courses have recorded good growth for Australia, whereas Working Holiday Visa Makers (WHVM) often plan and book directly online. Key players include Go Study Australia, Interstudio, EF and WEP.The demand in the youth market has given rise to new tour operators specializing in group travel. Among the most promising ones are Weroad, Stograntour, Ketrip, Blueberry, and Sivola. Specialized primarily in medium-haul destinations or mass-market locations with a moderate budget.

Planning a visit to market

Top tips for sales calls

• Make sure you know the product and positioning of a tour operator before meeting with them. Product managers expect your products to be relevant to their clientele.
• An average sales call with a product manager should last between 45 to 60 minutes.
• The best time for sales calls is January to May and October to early December.
• The key market centres to visit are Turin, Milan and Rome but specialised operators are spread throughout the market.
• For more general information on sales calls and planning a visit to market, please see Tourism Australia’s Tourism Export Toolkit.